- Author : Xiaonan Liu
- Publisher :
- Release : 2014
- ISBN :
- Pages : pages
Demand System with Binding Non negativity Constraints and the Effect of Product Quality on Net Trade
Download or read book Demand System with Binding Non negativity Constraints and the Effect of Product Quality on Net Trade written by Xiaonan Liu and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The second study investigates consumers' demand for fresh and processed fruit by applying a two-step estimation procedure to a Quadratic Expenditure System. Using homescan data, we find that household size, income, region, and price significantly affect fruit purchases. We estimate own-price and cross-price elasticities and expenditure elasticities for 18 categories of fruit. More processed fruits serve as substitutes for fresh fruits than complements. Often fresh fruits act as normal goods, and processed fruits as inferior goods. Providing a retail subsidy for fresh fruit or imposing a tax on canned and (or) dried fruit could promote fresh fruit consumption for a healthier diet.